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Leases

12 Months Ended

Dec. 31, 2025

Note 4. Leases

Lessee Lease Arrangements

The following table presents the components of lease cost for the years ended December 31 (in thousands):


Statement of operations location:	2025			2024			2023
Cost of sales (a)	$	55,317		$	43,754		$	44,895
Selling, general and administrative expenses		4,856			3,266			2,727
Operating expenses (b)		71,059			70,520			68,645
Total lease cost	$	131,232		$	117,540		$	116,267

(a)	Includes short-term lease costs of $10.1 million, $10.0 million and $6.2 million for 2025, 2024 and 2023, respectively.

(b)	Includes variable lease cost of $14.0 million, $12.5 million and $10.5 million for 2025, 2024 and 2023, respectively, and short-term leases costs which were immaterial for 2025, 2024 and 2023.

Operating lease costs included in cost of sales are primarily associated with leases of barges and railcars and dedicated storage facility lease arrangements. Operating lease costs included in operating expenses are primarily associated with the leases of gasoline stations and convenience stores and terminal lease arrangements where the Partnership is responsible for operating the terminal facility. Operating lease costs included in selling, general and administrative expenses are primarily associated with the leases of office space, computers and automobiles.

The future minimum lease payments to be paid under operating leases in effect and included in the calculation of lease liabilities at December 31, 2025 were as follows (in thousands):


2026	$	74,212
2027		89,261
2028		77,912
2029		52,921
2030		43,449
Thereafter		147,576
Total lease payments		485,331
Less imputed interest		100,127
Total lease liabilities	$	385,204
Current portion	$	73,775
Long-term portion		311,429
Total lease liabilities	$	385,204

The future minimum lease payments include $22.2 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $8.5 million in lease payments that were not fixed at lease commencement or lease modification and $6.5 million related to minimum lease payments for leases that are less than one year. Future minimum lease payments in 2026 are net of tenant improvement allowance of $18.9 million that the Partnership expects to receive in 2026.

Supplemental Information Related to Lessee Lease Arrangements

At December 31, 2025, the weighted average non-cancellable lease term was 6.9 years and the weighted average discount rate was 6.0%. The following table presents supplemental information related to leases for the years ended December 31 (in thousands):


	2025			2024			2023
Cash paid for amounts included in the measurement of lease liabilities	$	83,885		$	83,559		$	86,763
Right-of-use assets obtained in exchange for new lease liabilities	$	154,401		$	109,276		$	30,701

Lessor Lease Arrangements

The following table presents the components of lease revenue for the years ended December 31 (in thousands):


Statement of operations location:	2025			2024			2023
Sales (a)(b)	$	89,295		$	86,937			83,534

(a)	Lease revenue includes sub-lessor rental income from leased properties of $49.3 million, $48.9 million and $48.2 million for 2025, 2024 and 2023, respectively, where the Partnership is the lessee of the property.

(b)	Includes variable lease revenue of $9.4 million, $9.3 million and $8.9 million for 2025, 2024 and 2023, respectively, and short-term lease revenue which was immaterial for 2025, 2024 and 2023.

The future minimum lease payments to be received under operating leases in effect at December 31, 2025 were as follows (in thousands):


2026	$	78,332
2027		39,886
2028		19,456
2029		3,878
2030		1,257
Thereafter		5,006
Total	$	147,815